LAR sells Torre Spínola, nearly doubling value

Spanish REIT LAR España Real Estate SOCIMI S.A. (LRE) has sold Torre Spínola (Madrid) to global fund manager Invesco for €37m, achieving a 94.7% value uplift in 4 years. The office is located in Madrid’s Chamartín district and comprises a total built area of 8,875m² including 135 parking spaces.

LAR ESPAÑA invested around €9 million to carry out a full-scale refurbishment of the property including stripping out all the internal elements on the property’s above-ground floors, leaving only the structure intact, and replacing all its internal systems, such as HVAC, plumbing, electrics and lifts. The façade that fronts the M-30 was also given greater visibility.

Major energy efficiency improvements were also achieved at Torre Spínola, obtaining the ‘Very Good’ Breeam rating for “New Construction”. This world-renowned sustainable building certification is granted by the leading firm in this type of property classification. The result of this complete refurbishment of the asset is a more flexible and versatile building with more modern and efficient equipment. The property boasts LED lighting, a VRV climate control system, bicycle parking and CCTV systems, amongst others.

The sale of the office property, located at Calle Cardenal Marcelo Spínola 42, allows the SOCIMI to further fulfil its strategy to divest non-strategic assets in order to invest in other retail assets that are key to its business plan. Ramón y Cajal acted as LAR España’s legal advisor. Bought in July of 2014, this property was LAR’s sixth acquisition in Spain after its IPO on March 5th 2014.

José Manuel Llovet, Managing Director of Retail, Logistics & Offices at Lar, said “We are very proud of this sale after four years of hard work and an active management of the property, which has included a full-scale refurbishment of the asset and the improvement of its environmental and social footprint, as demonstrated by the Breeam certification.” Llovet added that “Torre Spínola appealed to us from an investment standpoint given its potential and location. This type of product was hard to come by in Madrid, as the slowdown in refurbishments in previous years had reduced the amount of quality office buildings available within the M-30 ring road”.

About LAR España

Lar España is a  Spanish property investment company listed in the Spanish Stock Exchange and incorporated as a Spanish SOCIMI, “Sociedad Anónima Cotizada de Inversión en el Mercado Inmobiliario” (Spanish legal vehicle comparable to REIT regimes present in other legislations).

The Spanish REIT currently owns 17 properties valued at c. €1.5 billion, of which; €1,376 million relate to shopping centres located in Madrid, Toledo, The Balearic Islands, La Rioja, Vigo, Valencia, Alicante, Lugo, León, Vizcaya, Guipúzcoa, Palencia, Albacete and Barcelona; €39 million to the Eloy Gonzalo office building; and €84 million to the Lagasca99 residential development.

In 2015, LAR ESPAÑA was included on the FTSA EPRA/NAREIT Global index, a select global index designed to showcase the general trends of listed real estate companies around the world. In September 2018, for the fourth year running, Lar España received the EPRA Gold Award in recognition of the quality of the financial information it provided to its main stakeholders. In recognition of its information published on Corporate Social Responsibility and Sustainability, Lar España was awarded the highest distinction by EPRA, winning the Gold Award for the first time.

Grupo Lar is a Spanish diversified real estate company with international presence and over 29 years of track record in the sector. Its activities entail asset management, investment, development and property management in commercial and residential real estate, operating in 8 countries across European and Latin American markets.

The Company has been successful across the different economic cycles with diversified operations including the commercial and residential real estate sectors and is highly experienced in active portfolio and asset management, refurbishment and development. In addition, during these years Group Lar has built a strong and successful reputation working with third party investors as co-investors and JVs, including Axa, Fortress, GE Capital, Grosvenor, Morgan Stanley and Whitehall Funds.

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